scholarly journals Entrepreneurial Networks, Entrepreneurial Orientation, and Performance of Small and Medium Enterprises: Are Dynamic Capabilities the Missing Link?

2020 ◽  
Author(s):  
Ayman Abu-Rumman ◽  
Ata E. M. Al-Shra'ah ◽  
Faisal Al-Madi ◽  
Tasneem Alfalah
Keyword(s):  
Strategic Alliances ◽  
Entrepreneurial Orientation ◽  
Dynamic Capabilities ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Entrepreneurial Networks ◽  
Mediating Role ◽  
And Performance ◽  
Medium Enterprises

Abstract Performance of small and medium enterprises (SMEs) has been addressed widely in the literature. Developed and developing both the countries are highly concerned about the growth and performance of small and medium enterprises. The literature over the performance is abundant, however, has certain controversies. To identify the reasons behind those controversies, this study has been conducted. the aim of the study was to identify the mediating role of dynamic capabilities which are developed by the entrepreneurial networks and entrepreneurial orientation. The study collected the data from those small and medium enterprises which were connected through a closed network and were the part of groups. The data was collected with the help of adopted questionnaire. 100 small and medium enterprises were contacted for the collection of data. The sample firms were chosen on purposive sampling basis. Structural equation modelling was applied to identify the direct impacts and the mediating impact. The findings identified that among the chosen firms, entrepreneurial networking has an insignificant impact, however, entrepreneurial orientation has shown a significant positive impact. Furthermore, the mediating role of dynamic capabilities was significant in both the relationships. The findings suggested that the sector should develop strong networks and should consider strategic alliances to gain competitive edge. Future researchers are guided to implement the same framework along with the dimensions of the variable.

scholarly journals Entrepreneurial networks, entrepreneurial orientation, and performance of small and medium enterprises: are dynamic capabilities the missing link?

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Ayman Abu-Rumman ◽  
Ata Al Shraah ◽  
Faisal Al-Madi ◽  
Tasneem Alfalah
Keyword(s):  
Strategic Alliances ◽  
Entrepreneurial Orientation ◽  
Dynamic Capabilities ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Entrepreneurial Networks ◽  
Mediating Role ◽  
And Performance ◽  
Medium Enterprises

AbstractPerformance of small and medium enterprises (SMEs) has been addressed widely in the literature. Both developed and developing countries are highly concerned about the growth and performance of SMEs. The literature exploring performance is abundant, however, has certain controversies. To identify the reasons behind those controversies, this study was conducted with the aim being to identify the mediating role of dynamic capabilities which are developed by entrepreneurial networks and entrepreneurial orientation. The study collected the data from a sample of SMEs based in Jordan which were connected through a closed network and were the part of groups. The data was collected via an electronic questionnaire, and100 SMEs were contacted and invited to participate in the survey on a purposive sampling basis. Structural equation modelling was applied to identify the direct impacts and the mediating impact. The findings identified that amongst the chosen firms, entrepreneurial networking has an insignificant impact; however, entrepreneurial orientation has shown a significant positive impact. Furthermore, the mediating role of dynamic capabilities was significant in both the relationships. The findings suggested that the sector should develop strong networks and should consider strategic alliances to gain competitive edge. Future researchers are guided to implement the same framework along with the dimensions of the variable.

The nexus between entrepreneurial orientation and performance: enabling roles of absorptive capacity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ismail Raisal ◽  
Arun Kumar Tarofder ◽  
Aboobucker Ilmudeen
Keyword(s):  
Absorptive Capacity ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
Medium Enterprises

PurposeDeveloping countries’ economic growth very much depend on the successful performance of entrepreneurial-oriented firms. Entrepreneurial orientation (EO) is a valuable conjecturer of firm success. This study mainly focuses on analyzing the effect of EO on the firm performance (FP) with the mediating role of absorptive capacity (ACAP).Design/methodology/approachTo test the hypothetical model, we collected 226 valid responses from senior managers of small and medium enterprises (SMEs). The structural equation modeling technique is performed and research hypotheses are validated.FindingsThe findings show that the strong causal relations exit between EO, ACAP and FP. In brief, EO was found to be a predictor of ACAP, and ACAP has a strong positive impact on FP. Moreover, ACAP substantiated to be a mediator between EO and FP.Research limitations/implicationsA notable ramification of this finding is that for SMEs to enhance their performance via EO, the presence of ACAP as a mediator is essential.Practical implicationsThe findings of this study can be used as a basis to consider EO to increase firms' level of ACAP and to enhance FP. As a whole, the findings offer pragmatic insights for SMEs and pertinent stakeholders.Originality/valueSo far, little is known about the interrelationship between EO, ACAP and FP. Importantly, the mediating role of ACAP between EO and FP has remained unexplored. This study fills this gap in the existing literature.

Dynamic capabilities, innovation and branding capabilities and their impact on competitive advantage and SME's performance in Portugal: the moderating effects of entrepreneurial orientation

2020 ◽  
Vol 12 (3) ◽  
pp. 255-286
Author(s):  
Jorge Ferreira ◽  
Arnaldo Coelho
Keyword(s):  
Competitive Advantage ◽  
Entrepreneurial Orientation ◽  
Dynamic Capabilities ◽  
Exploration And Exploitation ◽  
Content Type ◽  
Mediating Role ◽  
And Performance ◽  
Positive Direct ◽  
Moderating Role

Purpose The purpose of this paper is to understand the impact of dynamic capabilities (DC) (in the view of exploration and exploitation) on competitiveness and performance, considering the mediating role the innovation capability (IC) and branding capabilities (BC)on competitive advantage and firm’s performance and the moderating role of entrepreneurial orientation (EO). Design/methodology/approach This investigation proposes a theoretical model tested using structural equation modelling (SEM). Multi-group analysis was performed to understand the moderating role of. A questionnaire survey was developed to explore the relations between DC and innovation variable. For this study, 387 valid questionnaires were collected from a sample of Portugal SME’ firms. A 90-item questionnaire which consists to study the relationships among all the variables. Findings The results show that exists a positive direct and indirect influence of DC on competitive advantage and performance variables and mediating impact the IC and BC. Research limitations/implications This study has some methodological limitations affecting its potential contributions. As a cross-sectional study that captures one image in time, its ability to identify strict causality between variables is limited. Furthermore, the results are based on log collected from a key respondent, rather than broader actual data. The results are restricted to one country, Portugal. Some variables, such as ICs, may play a different role in other countries. Future research should initially target different countries. Such research could then test the generalizability of the results. Practical implications This study has important implications for the managers. It highlights the necessity of firms to develop superior strategic orientation of all their members and to invest in better resources and consequently superior capabilities as a way of achieving high levels of firm performance. Another implication from the study is that the firms should develop their marketing programs by focusing on developing innovativeness. Originality/value This study contributes to the understanding of the indirect and direct impact of exploration and exploitation variables, and the mediating role of ICs and BC on the competitive advantage and performance and the moderating effect of EO.

Entrepreneurial Orientation and Dynamic Capabilities

2019 ◽  
pp. 69-101
Author(s):  
Ana Sofia Coelho ◽  
Ana Lisboa ◽  
José Carlos M. R. Pinho
Keyword(s):  
Product Development ◽  
Entrepreneurial Orientation ◽  
Global Economy ◽  
Qualitative Method ◽  
Dynamic Capabilities ◽  
Small And Medium Enterprises ◽  
Medium Enterprises ◽  
Critical Resources

Currently, small and medium enterprises that are family businesses (SMEFs) assume an important role in the global economy. Further, innovation and flexibility became vital to firms' survival and prosperity in the market during these volatile times. Firms should not only possess critical resources, but also be able to recombine them. Characterized by resource restrictions, SMEFs can rely on dynamic capabilities to access resources and be competitive in the market. In this regard, networking capabilities (NC) and resource combinations (RC) such as exploitative and explorative product development and on market-related capabilities emerge as key dynamic capabilities. This chapter examines the role of Entrepreneurial Orientation (EO) on NC and RC. Using a qualitative method of in-depth case study, the chapter analyzes 12 Portuguese SMEFs.

scholarly journals Disentangling the relationship between entrepreneurial orientation, organizational learning and small and medium enterprises performance

2016 ◽  
Vol 6 (2) ◽  
pp. 167-175
Author(s):  
Ramatu Abdulkareem Abubakar
Keyword(s):  
Organizational Learning ◽  
Survey Data ◽  
Entrepreneurial Orientation ◽  
Small And Medium Enterprises ◽  
Mediating Role ◽  
Medium Enterprises ◽  
The Relationship

While a considerable amount of research has consistently established significant positive relations between entrepreneurial orientation and small and medium enterprises’ performance, there is a paucity of research examining the fundamental processes behind this relationship. To address this theoretical gap in the literature, this study examined the mediating role of organizational learning in the relationship between entrepreneurial orientation and SME performance. Based on survey data collected from 193 SMEs, located in Kano metropolis, findings suggested that entrepreneurial orientation was significantly associated with SME performance. Furthermore, the results indicated that the relationship between entrepreneurial orientation and SME performance was mediated by organizational learning. The implications of the results for explaining the performance of SMEs are discussed.

scholarly journals IMPACT OF DYNAMIC CAPABILITIES ON SMALL AND MEDIUM ENTERPRISES PERFORMANCE IN A VOLATILE ENVIRONMENT AS MODERATED BY ORGANIZATIONAL INERTIA

2020 ◽  
Vol 12 (1) ◽  
Author(s):  
Prasheenaa Jeyaranjan ◽  
Thavakumar D
Keyword(s):  
Organizational Performance ◽  
Dynamic Capabilities ◽  
Small And Medium Enterprises ◽  
Competitive Advantages ◽  
Significant Relationships ◽  
Organizational Inertia ◽  
And Performance ◽  
Medium Enterprises ◽  
The Relationship

In Sri Lanka especially in Batticaloa, the studies related to dynamic capabilities, organizational inertia and organizational performance are rare and there is need to fill this empirical gap by investigating the influence of the dynamic capabilities of small and medium enterprises (SMEs) on organizational performance, and the interaction between dynamic capabilities and organizational inertia in a volatile environment. Therefore, this study has been undertaken to examine the relationship among these three variables and to assess the moderating role of organizational inertia in relationship between dynamic capabilities and organizational performance. The findings indicated that the variables have significant relationships among them and further findings of this study revealed that organizational inertia negatively moderates the relationship between dynamic capabilities and organizational performance of SMEs in Manmunai North Divisional Secretariat in Batticaloa District. By addressing the findings of this study SME owners could try to reduce the inertia in their business by which the relationship between dynamic capabilities and performance can be induced and this lead the businesses in achieving competitive advantages.

scholarly journals Does Environmental Uncertainty Affect Entrepreneurs’ Orientation and Performance? Empirical Evidence from Indonesian SMEs

2012 ◽  
Vol 14 (1) ◽  
pp. 1
Author(s):  
Rina Herani ◽  
Otto Andersen
Keyword(s):  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Critical Role ◽  
Environmental Uncertainty ◽  
Uncertain Environments ◽  
Uncertain Environment ◽  
And Performance ◽  
Medium Enterprises

Small and medium enterprises (SMEs) have a critical role in economic growth in Indonesia and become the backbone for job creation, poverty alleviation, and safeguard during the crisis. However, they are highly exposed to uncertain environments. The present study aimed to investigate the influence of SMEs’ entrepreneurial orientation on business performance when uncertain environments exist. A total of 152 Indonesian SMEs were studied in order to assess this relationship. Moderated regression analysis is performed as the main statistical procedures to analyse the moderating role of environmental uncertainty on the influence of entrepreneurial orientation on business performance. Surprisingly, the result of the present study did not confirm the previous predominant studies which found that entrepreneurialorientation dimensions are positively associated with business performance in growing in an uncertain environment. Indonesian entrepreneurs were reluctant to innovate, be proactive, and take risks when an uncertain environment exists. The present study was an endeavour to provide better insight in explaining the inconsistent and ambiguous findings from existing literature.

scholarly journals The Role of Proactiveness as a Mediatore Between Organizational-Stakeholders Relationship and Smes Performance

2019 ◽  
Vol 54 (3) ◽  
Author(s):  
Alireza Jalali ◽  
Mastura Jaafar
Keyword(s):  
Structural Model ◽  
Small And Medium Enterprises ◽  
Full Range ◽  
Cluster Sampling ◽  
Success Factor ◽  
Mediating Role ◽  
Organizational Stakeholders ◽  
And Performance ◽  
Medium Enterprises

This study examines the mediating role of proactiveness between organizational-stakeholders relationship and performance of small and medium enterprises (SMEs). Cluster sampling method and questionnaire were used to collect data from 150 SMEs in Tehran. SmartPLS 3.0 was utilized to analyze the measurement and structural model. The survey outcomes revealed that organizational-stakeholders relationship had an indirect effect on performance through proactiveness. The results also indicated a positive links for organizational-stakeholders relationship and proactiveness. This research is one of the few attempts that have addressed the importance of proactiveness as the key mechanisms to transform the advantages of organization-stakeholder relationship to enhance performance.Scope: This research is beneficial for entrepreneurs who wish to learn about the specific resources significant for venture growth, to devise effective strategies to expand their relationship with stakeholders. It can be concluded that accessing the full range of resources via stakeholders is the key success factor for proactivness and firm performance.

Entrepreneurial Orientation and Dynamic Capabilities

2022 ◽  
pp. 738-771
Author(s):  
Ana Sofia Coelho ◽  
Ana Lisboa ◽  
José Carlos M. R. Pinho
Keyword(s):  
Product Development ◽  
Entrepreneurial Orientation ◽  
Global Economy ◽  
Qualitative Method ◽  
Dynamic Capabilities ◽  
Small And Medium Enterprises ◽  
Medium Enterprises ◽  
Critical Resources

Currently, small and medium enterprises that are family businesses (SMEFs) assume an important role in the global economy. Further, innovation and flexibility became vital to firms' survival and prosperity in the market during these volatile times. Firms should not only possess critical resources, but also be able to recombine them. Characterized by resource restrictions, SMEFs can rely on dynamic capabilities to access resources and be competitive in the market. In this regard, networking capabilities (NC) and resource combinations (RC) such as exploitative and explorative product development and on market-related capabilities emerge as key dynamic capabilities. This chapter examines the role of Entrepreneurial Orientation (EO) on NC and RC. Using a qualitative method of in-depth case study, the chapter analyzes 12 Portuguese SMEFs.

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